The Network Of Organization And The Growth Of Small And Medium Enterprises

In this paper, we talks about the relation between a network of small and medium enterprises and the growth of them in a micro-sociological organizations perspective. Facing intense competition in the current environment, large enterprises often enhance the response rate and the internal vitality through an internal corporate network. However, small and medium enterprises can only use external network to reduce costs and acquire resources because of its characteristics.Under this framework, the network of organizations—accessing to resources of business—the growing of business, this paper analyzes how small and medium enterprises construct the network as well as the process of formation and growing up. Small and medium enterprises rely on key social relations and marketing network to achieve its own network. The network of small and medium enterprises must have relevant industry. If the two companies have more relevant industry, they are likely to form a network relation. After setting up a business association, the two companies will continue to interact on the basis of trust and finally acquire mutual profit to maintain the stability of the network structure. The network structure of company will continue to expand through the establishment of links to more and more enterprises.There is a question: how the organization's network influences the growth of small and medium enterprises? In order to avoid their own disadvantages, such as the shortage of funds, the risk of market transactions, small and medium enterprises not only save the cost of resources, complement resources with each other, but also achieve the company's growth and maturity through network of outside. In this paper, the case is unique. In previous enterprise network theoretical study, the company always seek network to access resources. However, through its own core strengths to attract other companies to cooperate with him, this case has taken"forced"or"round"way to network to get resources, which guaranteed the autonomy in the enterprise network structure and maximize its value of the core strengths resources in a large extent. In addition, the article focuses on the relationship between the members in network structure. There is a competition and cooperation in network structure of the enterprise. The network nodes between enterprises are a chain of interests. Organization and the enterprise network nodes have different affinities between business organizations. If the two business organizations have a strong dependence, they will be closely connected on the network. Finally the article discussed the technical problems of small and medium enterprises are unable to resolve in the network. In the other words, the current enterprise network still stay in the stage of the surface which means low industrialization and correlation, and not really realize the integration of industrial chain. They unable to just achieve this chain to upgrade the whole industry chain.At the present situation, the trend of the organization's network has become the general consensus in academic. The border between the environment and organization has become increasingly blurred. The relationship between the organization and the environment now more stay in the network including the organization itself. The studies of enterprise network theories before are used in static approach and also lack of network formation and evolution of the dynamic process of research. The network of the organization emphasis cooperation too much, and lose sight of their cost between the members. In the growth of business, the network's research concentrated on the characteristics of the network, in particular the formed network. The questions which how to build networks and the process of network growth are few. To understand the network, it is necessary to understand its ongoing evolution of the process. Setting up the study of enterprise network can be understood on the structure of small and medium enterprise'start, survival and growth issues.In this paper, a case study in these areas from the theory and practice view has attempted to draw some meaningful conclusions. However, due to a case study, the universal relationships between the growth of small and medium enterprise and the network need for further research.